Lisbon, Sep. 13 (Lusa) – The International Monetary Fund (IMF) said on Thursday the Portuguese economy was doing well with the backing of investment and exports, but recommended that the government maintained its reforms to be able to stand up to shocks and reduce vulnerabilities.
Today’s IMF report estimates that the growth in the Portuguese economy “drops back from its peak” to gradually moderate over the medium term and makes some recommendations.
Among these, the IMF encourages the government to maintain its policies and the reforms to ensure resistance against future shocks, to reduce vulnerabilities and facilitate convergence with the average European Union incomes.
The IMF said this recovery has led to a drop in unemployment and job creation.
The report stated that the current favourable economic conditions provided the government with a chance to focus on budget consolidation.
In terms of counterbalancing the ageing population, the IMF recommended more structural reforms to foster investment and allow highly-qualified workers to reach their potential.
The government was also encouraged to remove unnecessary regulatory barriers, reduce the price of energy, improve workers’ output compared with the wages and improve the insolvency regime.
ICO/ADB // ADB.
Lusa